Business | Markets
Karachi index rebounds on minister's visit plan
Pakistan's stocks rose on optimism Finance Minister Syed Naveed Qamar will announce measures to support a market that has fallen 28 per cent this year, triggering violent protests.
- Bloomberg
- Published: 00:08 July 22, 2008
Karachi: Pakistan's stocks rose on optimism Finance Minister Syed Naveed Qamar will announce measures to support a market that has fallen 28 per cent this year, triggering violent protests.
The Karachi Stock Exchange 100 index rebounded, rising 1.36 per cent to 10,374.30 at the 2.15pm local time close after dropping as much as 1.7 per cent earlier.
Oil & Gas Development, the country's largest oil explorer, advanced the most in three weeks. National Bank of Pakistan, the biggest by assets, gained for the first time in 17 days.
The minister is scheduled to visit the Karachi bourse today to discuss ways to boost the market, board member Mohammad Sohail Dayala said by phone.
The exchange has proposed a market support fund to be approved by the Securities and Exchange Commission of Pakistan.
"The news of the minister's visit supported investor sentiment,'' said Farhan Mahmoud, a research analyst at Karachi- based JS Global Capital. "They might announce support measures such as the fund, which is yet to be finalised.''
Foreign investment
Foreign investors slashed spending on Pakistani stocks to $62.2 million in the 11 months ended May 31, from $1.76 billion a year earlier, according to data compiled by the central bank.
The securities commission on June 24 imposed and then removed a 1 per cent daily limit on price declines on July 14. The measure had been aimed at halting a slide that wiped out $30 billion of market value in three months, threatening to undo a 14-fold rally since 2001.
Oil & Gas Development rose five per cent, the daily limit, to Rs113.71. National Bank of Pakistan gained five per cent to Rs115.48.
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